Ignatius Warsito, Advisor to the Minister of Industry for Domestic Industry Strengthening, reported that Indonesia's whole spice exports reached USD 469 million in 2023, ranking fifth globally. This export performance is supported by various commodities, including pepper, turmeric, ginger, and coconut products. However, Indonesia ranks 18th in processed spice exports, with a value of USD 360 million. In the second quarter of 2024, the food and beverage industry grew by 5.53% and contributed 40.33% to the GDP. The global market share for processed spices is valued at USD 22 billion, highlighting significant opportunities for Indonesia in downstream spice processing.
The Ministry of Industry continues to develop the food and beverage sector through fiscal and non-fiscal policies, such as tax holidays and tax allowances, to encourage investment, technology acquisition, and industry structure enhancement. The Ministry aims to collaborate with various stakeholders to identify and utilise domestic raw materials for health applications, such as antioxidants and anti-inflammatories, while focusing on environmental sustainability through circular economy principles. The goal is to create new product formulas combining local spices to meet the high demand for natural and functional ingredients. This initiative is expected to increase the added value of Indonesian spices and enhance Indonesia's position in the high-quality food ingredient market. The Food Ingredients Asia Indonesia 2024 exhibition, featuring 700 exhibitors, is viewed as a key opportunity for business development in the food and beverage industry. The event, which aims to attract 2,800 visitors, is expected to foster collaborations that could boost exports and further grow the food and beverage sector.
